Bikaji Foods after ED summons: Role in Rajasthan Premier League 'limited to sponsorship'

Manufacturer of snacks and sweets Bikaji Foods International Limited on Tuesday (September 9) clarified its position following the summons issued by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002, in connection with the ongoing investigation related to the Rajasthan Premier League, conducted by the Rajasthan Cricket Association.

In an official statement, the company said it had received a summons for its managing director to appear in person before the ED and present records related to the transaction with the Rajasthan Cricket Association.

The company stated, “Our company, along with the other parties involved in this Rajasthan Premier League, has received a summons directing the appearance of our Managing Director in person on behalf of the Company before the Authority, along with the presentation of records connected with Rajasthan Cricket Association Transaction, in this respect."

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The company clarified that its involvement was restricted to sponsorship. "At the initial, we submit that our company’s involvement in the Rajasthan Premier League was limited to the sponsorship in the said event.

The sponsorship was carried out in the ordinary course of our business, as a part of legitimate commercial activities aimed at promotion, visibility and development of business interest. We have no role whatsoever in the management, conduct or operational aspects of the said Rajasthan Premier League, beyond the sponsorship procedure.”

Bikaji Foods further asserted that all sponsorship payments were properly documented and made through valid banking channels. "We further clarify that all the payments made by the Company towards sponsorship were duly accounted for, supported by proper documentation and effected through valid banking channels. We have maintained complete records of the sponsorship transaction, which are available for inspection and will be duly furnished before the Enforcement Directorate, as and when required.”

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The company also stated that the sponsorship was undertaken purely for business reasons: “The sponsorship was taken solely in the interest of business promotion, brand development and outreach, which is a part of growth strategy.

We firmly affirm that there was no other purpose, motive or intention behind such sponsorship. The Company remains committed to extending full co-operation with the authorities and complying with all legal requirements in this matter."

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Shares of Bikaji Foods International Ltd ended at ₹773, down by ₹12.75, or 1.62%, on the BSE today (September 9).